Meta-frontier analysis using cross-efficiency method for performance evaluation

Lei Chen, Yan Huang, Mei-Juan Li and Ying-Ming Wang

European Journal of Operational Research, 2020, vol. 280, issue 1, 219-229

Abstract: Efficiency overestimation and technology heterogeneity are important factors that affect the use of data envelopment analysis. This paper introduces a meta-frontier analysis framework into a cross-efficiency method to develop a new efficiency evaluation method. This method can be used to calculate, aggregate, and decompose the cross efficiencies relative to the meta-frontier and group-frontier. Then the technology gap between these frontiers can be measured and more detailed information regarding the inefficiency of decision-making units can be obtained. This enables decision makers to improve efficiency in a targeted manner. Subsequently, the non-uniqueness of the optimal solution is discussed for the new method, and the cross-evaluation strategy is introduced to ensure the stability of the optimal solution. Finally, two examples are presented to illustrate the effectiveness of this method.

Keywords: Data envelopment analysis; Technology gap; Cross-evaluation strategy; Meta-frontier; Inefficiency (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:280:y:2020:i:1:p:219-229

DOI: 10.1016/j.ejor.2019.06.053

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